Unusual Stocks That American Analysts Are Now Upgrading
Copper mining and broadband internet companies have attracted attention
The U.S. Consumer Price Index rose by 0.4% in October, while economists surveyed by Reuters had expected an increase of 0.3%. Core inflation, excluding food and energy, increased by 0.3% against a forecast of 0.2%.
Against this backdrop, traders estimated the probability of a Federal Reserve rate hike by a quarter of a percentage point in December at 84%. The probability of a half-point hike in a single day rose from 0% to 15%. Dallas Federal Reserve Bank President Lorie Logan stated the need for at least two more quarter-point hikes. Federal Reserve Governor Christopher Waller also advocated for a December hike and, in the event of a worsening situation, allowed for a half-point increase.
On Tuesday, the Dow Jones Industrial Average fell by 0.30%, the S&P 500 by 0.38%, and the Nasdaq Composite by 0.74%. The day before, the S&P 500 had gained 2.35% amid falling oil prices, which eased inflation concerns.
UBS upgraded Southern Copper from Sell to Neutral, considering the risk-reward ratio roughly balanced at the current price. The company mines copper in Mexico and Peru and is primarily owned by Grupo Mexico. The Tia Maria and El Pilar projects are expected to add 156,000 tons of annual production by 2029; their implementation depends on local permits.
UBS raised Millicom's rating from Neutral to Buy and its target price from $100 to $109. The company provides mobile communications and home broadband internet in Latin America under the Tigo brand. In Colombia, where Millicom acquired the Coltel business, the profit margin reached 44.2%, despite integration costs.
